This paper assesses the effectiveness of stabilization policies and structural reforms in Albania since 1997 and seeks to identify the remaining key challenges in various policy areas. It also draws lessons for other transition economies from the recent Albanian experience. While progress has...

Albania enjoyed strong growth with comparatively benign external vulnerabilities before the crisis. Monetary policy provided timely support, and the exchange rate functioned as a shock absorber. However, policy buffers are now exhausted and must be rebuilt. Fiscal tightening has to be quickly...

This paper examines Albania’s 2002 Article IV Consultation, First Review Under the Three-Year Arrangement Under the Poverty Reduction and Growth Facility (PRGF), and Requests for Modification and Waiver of Performance Criterion. Economic growth appears to have fallen below a 7 percent...

Executive Directors commended the authorities for their policies to maintain macroeconomic stability, which had resulted in favorable growth performance and zero inflation, and welcomed improvements in tax collection and encouraged the authorities to continue with their efforts to strengthen tax...

This paper reviews Albania’s 1999 Article IV Consultation, Request for the Second Annual Arrangement Under the Enhanced Structural Adjustment Facility, and a Request for Augmentation. Inflation fell to 2 percent in March 1999. The return to growth and low inflation reflected the government's...

Sound macroeconomic management, supported by structural reform, has characterized Albania's performance under the current Poverty Reduction and Growth Facility (PRGF) arrangement, although poverty and emigration remain pervasive. Privatization is moving forward in the telecommunications sector...

Based on the experience of the Bank of Albania, the paper proposes a framework toestimate the interest rate lower bound in small, open, and euroized economies. The paperintroduces a stylized monitoring tool to assess the unintended consequences of low policyrates. The paper is the first attempt...

This paper proposes a methodology to develop empirically based and theoreticallyconsistent deeuroization policies. It is derived from the experience of Albania. The paperis the first attempt to provide an empirical measure of the optimal level of euroization.The results indicate that euroization...